Ascent Resources, the onshore Hispanic American and European focussed energy and natural resources company has announced that it has been advised that Geoenergo has initiated insolvency proceedings in Slovenia. Geoenergo is Ascent Slovenia Limited's ('ASL') joint venture ('JV') partner whom ASL has an ongoing Arbitration Tribunal hearing against. As announced on 25 October 2023, the Company received a positive Arbitration Tribunal binding interim decision, confirming Ascent Slovenia Limited (ASL)'s entitlement to proceeds above the baseline production profile from all wells in the concession area.
In response to this, the Company is now working with its Slovenian lawyers across multiple fronts, including; challenging the proposal for Geoenergo to enter into self-declared insolvency; registering ASL's significant creditor position with the courts; working to protect the status of the concession where possible; and also potentially filing civil claims and initiating criminal charges against the Directors and shareholders of Geoenergo (which may include Nafta Lendava d.o.o., a 100% Republic of Slovenia controlled entity, and Petrol d.d. which is a publicly listed entity and approximately 30% controlled by the Republic of Slovenia).
An administrator for Geoenergo is expected to be appointed shortly. The Company will be asking to investigate where the hydrocarbon revenues, which have been historically received by Geoenergo and claimed by ASL for some time and which now, following the arbitration outcome, are indisputably owed to ASL, are. ASL will collaborate with the necessary authorities to evaluate any potential misappropriation of those revenues.
Further announcements will be made as necessary.
Source: Ascent Resources
